W2

Question 1

Conflict

Answer 1

The energy created by the perceived gap between what we want and what we’re experiencing, important to use this energy effective

Question 2

Conflict handling styles (model)

Answer 2

2 axes: assertiveness (concern for self) and cooperation (concern for others)
Outcomes: Compromising, dominating, integrating, avoiding, obliging

Question 3

Conflict handling styles: Compromising

Answer 3

No-win, no-lose scenario, mutually acceptable scenario, not all needs are met but some are

Question 4

Conflict handling styles: Avoiding

Answer 4

Low concern for self and others: Lose-lose scenario, both parties don’t communicate so no needs are met, associated with withdrawal and sidestepping

Question 5

Conflict handling styles: Obliging

Answer 5

Low concern for self, high concern for others: own concerns are neglected in order to satisfy the needs of the other party, self-sacrificing, lose-win outcome

Question 6

Conflict handling styles: Integrating

Answer 6

High concern for self and others: try to find a win-win solution, everyone is open to their needs and to exchange information so that the best solution can be found

Question 7

Conflict handling styles: Dominating

Answer 7

High concern for self, low concern for others: win-lose outcome, you are more aggressive to make sure that your needs are met regardless of others

Question 8

Negotiation

Answer 8

Process of combining conflicting positions into a common position under a decision rule of unanimity, interpersonal decision-making process

Question 9

Distributive negotiation

Answer 9

Only one side wins, other loses¬, key terms: target, price, reservation price, bargaining zone

Question 10

Different scopes of negotiation

Answer 10

• One on one vs. multi stakeholder
• Few dollar negotiations vs. billions of dollars
• Minute negotiation vs. years
• Single issue negotiation vs. multiple issues
• Single encounter negotiation vs. long term relationship

Question 11

Target price

Answer 11

Price you would be happy with (goal)

Question 11

Bargaining zone

Answer 11

Range between reservation points of both negotiators, willing to settle here

Question 12

Reservation price

Answer 12

Price at which you’re indifferent between getting or not getting the deal (worst acceptable outcome)

Question 13

How do you determine a reservation point?

Answer 13

• Determine your reservation point
• Consider the consequences of failing to reach an agreement and know your alternatives
• Determine your BATNA

Question 14

BATNA (distributive negotiation)

Answer 14

Best Alternative To a Negotiated Agreement

Question 15

BATNA defines

Answer 15

The most a buyer will pay, and the least a seller would accept

Question 16

BATNA protects you against

Answer 16

Accepting an agreement you should reject, rejecting an agreement you should accept
The better the BATNA, the more power you have because you care less
Multiple options improve the BATNA

Question 17

Integrative negotiation

Answer 17

Focus on finding the biggest win-win scenario, nobody loses

Question 18

Integrative negotiation steps

Answer 18

Create value: expand the pie, and claim value: slicing the pie
If both parties work together, they can create more value than if they are purely combative, any value that is created must be claimed by someone

Question 19

How do we reach a win-win outcome?

Answer 19

All creative opportunities are leveraged, and no resources are left on the table (ex. orange peel and juice)
Put yourself in the others shoes, ask questions about their interests, reveal information about your interests (hoping they do the same), unbundle any issues

Question 20

Why is it difficult to negotiate single issues?

Answer 20

Most negotiations begin as a single issues negotiation, but we find that there are more issues that exist, making it more complex